Sunday, April 4, 2010

Market Outlook---April 5, 2010

Dealer’s Diary

The key benchmark indices surged on the first day of the new financial year, snapping a two-day slide, on broad-based buying. The market pared its gains later, after the latest data showed that growth in the manufacturing slowed down in the previous month. IT stocks were in demand on bargain hunting after a recent fall caused by the appreciation of the rupee against the dollar. Banking stocks gained on fresh buying. Metal, infrastructure stocks and heavyweights from the capital goods sector also logged gains on fresh buying, but telecom pivotals declined. The Sensex and Nifty lost 0.9% and 0.8%, respectively, while the BSE Mid-cap and Small-cap indices outperformed the benchmark indices and ended the trading session higher by 0.9% and 2.4%, respectively. Among the front-liners, TCS, Tata Steel, JP Associates, Tata Motors and HDFC were up by 2-3%, while HUL, Bharti Airtel, M&M, Maruti Suzuki and Tata Power were down by 1-3%. In the mid-cap segment, P&G, Hind Oil Exploration, Astrazeneca, Essar Shipping and SKF India were up by 6-15%, while Balrampur Chini, Shree Renuka, Mcleod Russell, Gammon India and Texmaco were down by 2-4%.

The trend deciding level for the day is 17651/5279 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17748–17803/5310–5329 levels. However, if NIFTY trades below 17651/5279 levels for the first half-an-hour of trade then it may correct up to 17596–17500/5260–5230 levels.

Economic and Political News
• Food inflation rises to 16.4% on milk and pulses prices
• RBI relaxes asset classification norms
• Steel firms raise product prices by Rs2,500/tonne
Corporate News
• NMDC raises base ore prices by 34-35%
• L&T, Rolls-Royce sign nuclear equipment pact
• Wockhardt, Abbott call off nutrition biz deal
• AstraZeneca, US company launch anti-diabetes drug

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